Centrica - setting up nicely

13 พ.ย. 2020

If you have been following along then hopefully you took the neutral triangle trade. As you can see the E wave hit target at the price and time window (a nice 25% move). Now that this has played out we can begin to calculate the next buy price for Centrica. The thrust out of a neutral triangle is more 'trendy' than other triangles, but we can anticipate a 0.75 to 1 extension (max 1.618). I like the 1/1 extension as this has confluence with the 0.618 from the start of the move down in February and coincides with the bottom of the range. Price target is around 59 pence. Good luck if you're trading CNA.